Sirius XM Holdings Inc (SIRI)

[aharfo56]

I've heard that argument, and it may well be true. The real question is whether or not the economy (and particularly the consumer) will recover between now and 2010. You know, we talk about how other economies need to be more diversified (like, for example, the Arab oil states...many of which have no taxes because of oil revenues...however, once oil dries up they better have something else to sell or they'll go back to be desert people living in mud-huts), but ours is centered around the consumer (3/4 of our economy is consumer spending...too much I think).

Once Americans decide to save and no longer blow every dime they make, the economy will tank for a long time...but over the long run we need to live within our means no matter how one looks at it. So, back to the original argument. That the Cash for Clunkers is merely taking sales from the future. If the economy recovers in late 2009 early 2010, it won't be that big a deal. If we DON'T recover, then we're in trouble anyway. We can't continue deficit spending forever, but during hard times government spending can help but if it's paid back and the economy recovers fairly soon. If we are looking at long term unemployment and underemployment, look out because most luxury items will be too expensive for enough people to buy them. We'll see.